Participants at the group’s ‘Stopping pension scams’ event on Tuesday were asked to rate their scheme’s preparedness for new restrictions on transfers.
Just less than half (47.2 per cent) of respondents said their schemes still had some work to do, while 8.6 per cent said they had “lots of work to do”. By comparison, 36.5 per cent reported being “almost there”, while only 6.1 per cent were “completely prepared”.
Having worked with colleagues who have worked night and day over the past month to get some schemes ready for this new regime, this is a fundamental shift in the game – and trustees need to be ready for it
As Pensions Expert and FTAdviser reported in November, the new regulations will require checks to assess whether a pension transfer request meets certain conditions to enable a statutory right to transfer.
The regulations will empower trustees and scheme managers to prevent a transfer request when a ‘red flag’ is present; for example, if a scheme member requests a transfer after receiving an unsolicited contact or being offered an incentive to transfer.
In instances of any ‘amber flags’, such as investments that would normally only be offered to sophisticated investors, a member must obtain guidance from the government’s MoneyHelper service before the transfer can go ahead.
Casting a wide net
The new regulations state that for transfers to proceed without checks and delays they…
